DER 2.0: The Evolution of Distributed Resource Technologies and...

31
Western Conference 2017 DER 2.0: The Evolution of Distributed Resource Technologies and Regulators

Transcript of DER 2.0: The Evolution of Distributed Resource Technologies and...

Page 1: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

Western Conference 2017

DER 2.0:The Evolution of

Distributed Resource Technologies

and Regulators

Page 2: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

DER 2.0: Evolution of Distributed Energy

Resource Technologies and Regulations

John Goodin

Manager, Infrastructure and Regulatory Policy

NARUC Western Conference

May 22, 2017

Page 3: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

The growth in renewables and distributed energy resources is transforming

California’s energy supply portfolio and how our grid functions.

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2016 2017 2018 2019 2020

Behind-the-meter Build-out through 2020

23,000 MW

Approx. 5,400 MW BTM solar today

130 MW/Mo. Growth Rate

System Peak Demand was 46,232 MW on July 27, 2016

Page 4: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

Rapid DER deployment is spurring a democratized and decentralized system

calling for enhanced coordination at the T&D interface.

Diverse end-use devices and diverse owners/operators affect:

o Load shapes, peak demand, total energy consumption

o Energy flows, voltage variability, phase balance

o Variability and unpredictability of net loads and grid conditions

CAISO “sees” DER as if located at T&D substations

– No ISO visibility to distribution grid conditions/impacts

– Distribution utility is unaware of DER bids and dispatches

DER providing services to customers and the distribution

system affects the T&D interfaces

– Need accurate operational forecasting and local management

of DER variability to ensure end-to-end feasibility

Page 4

End

-to-E

nd F

easib

ility

New control and

coordination needed

at the T-D Interface

Distribution

Grid

DSO

ISO

Page 5: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

DERP

DSOISO

Daily coordination, cooperation, and engagement is needed to

ensure feasible energy transactions.

Page 5

DERP Update

ISO/DSO on

resource

limitations and

outages

ISO Provide

schedules to

DSO to ensure

feasible

dispatch

DSO provide

advisory info on

grid conditions

to DERP to

ensure feasible

DER

bids/schedules

Page 6: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

DSO = Local Distribution Area or

Community Micro-grid

Regional Interconnection

The future grid may be a layered hierarchy of nested optimizing

sub-systems.

Page 6

D

S

O

D

S

O

CAISO

Balancing

Authority

Area

BAABAA

• Each tier only needs to see

interchange with the next tier above &

below, not the details inside other tiers

• ISO focuses on regional bulk system

optimization while DSO coordinates

DERs

• Layered control structure reduces

complexity, allows scalability, and

increases resilience & security

Point of Interchange

XXX

XX

Smart

building

X

Micro-

grid

Micro-gridX X

Smart

building

X

Smart

building

X

X

Page 7: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

Thank you.

John Goodin

[email protected]

Market & Infrastructure Policy

Page 7

Page 8: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

Food for thought as we move into a high-DER future...

• Enabling Multi-use Applications of DER

– What grid services can be valued and stacked?

– Who has primacy over the resource in what situations?

– How to prevent double counting of capacity or resource capabilities?

– Net energy metering interactions and impacts on multiple-use applications

• Assessing DER Performance and Evaluation Methods

– Retail/wholesale metering interactions and adjustments needed.

– Sub-metering issues, rules, and manipulation concerns/

– Accounting for and removing the “typical use” of devices to ensure no double payments when selling specific grid services.

• Understanding DER Modeling and Optimization Techniques

– Setting and managing aggregate DER resource distribution factors in network models, i.e. how much expected output from each Pnode?

– How to account for the dynamic nature of DER when resource configurations and capabilities can vary greatly over time?

– How to model and manage storage device state of charge constraints?

– How to manage resource use limitations beyond 24 hour optimization horizons

• Agreeing on the Best System Architecture Design

– How to properly model and forecast interactions at the T&D interface?

– How to properly model micro-grids/Nano-grids?

– What is the most elegant system architecture to employ in a high-DER future? A Nested architecture or ?

• Coordinating Actions and Information at the T&D Interface

– How to ensure feasible dispatches from ISO to end-use customer

– What are the essential roles and responsibilities of key players at the T&D interface?

– What information must be exchanged and in what timeframes?

• Addressing Station Power Rules and Regulations

– How to treat station power when storage device is in charging mode?

– How to avoid double charging for station power at retail and wholesale level in behind the meter applications?

Page 8

Page 9: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

Western Conference 2017

DER 2.0:The Evolution of

Distributed Resource Technologies

and Regulators

Page 10: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

DER 2.0: The Evolution of Distributed Energy Resource Technologies and RegulationsLon Huber – Senior Director

Page 11: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

11

BTM Technologies

Solar PV

Energy Storage

Demand ResponseEnergy Efficiency

Durable Goods

Electric Vehicles Data & Information

Utility Customer

11

Page 12: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

12

▪ Multiple use cases and services

▪ Customer choice and empowerment

▪ Favorable technological attributes

▪ And:

Why?

Breakdown based on 2013 percentages

Page 13: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

13

Possible Services and Benefits

• Revenue Gener~tJnl value

• Cos! MJIJptIOn V~I~ • RIsk fledl>diOfl """'e • Non·flewnueV~lue

....... STRATEGEN

..,: .... CO N SUI..T1NG

, --

T&D losses

EnVIronmental Bene/Its

EconomIc Develo ent , --

locational 1&0 Losses

RIsk Hedge

Enwonmental Benefits

ECOflormc Development

Page 14: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

14

“Smart Home” Ecosystem Players

14

GTM Research

_ .. T5Gftw ................ --- --- . -- - -- ~, # ", • • - 0 ~ .- S" ...,.

'"" - - _ .... , , "'. .- • - • - .- --= 0 =

. • -- 0- .. -- • o ,- .."..- ,,_ _ ....... _ \I." .... s,· •••••••••••••••••••••••••

---- '-OPCWIR ~ -~ ." -, ceN\_ @:t.. r •• • " J

t.I!itWtco 11\=::. . ........... n

OPO WER ~AutoGrid

HITACHI

- -_.-- 0-- ,~ c -0

, '" ~ - ~ • == - ~ .- - --

STRATEGEN CO N SI,II,. T 1 N G

- ._ .. " .0" ..

-

---•

• -

-. " t'" _ • o -

.... . -- -- --- -~ - 9 - - - .. . , _ ®- 0 ___

,,,. - - -- --- 0-

-- .. -.- -''i , • " ••. ·i --'to __

- WIII",arl

Page 15: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

Energy Storage Providers

Source: GTM Research15

GTM Research

Residential Segment

( :"'II STRATEGEN -..",CON S ULTING

Power Bectronics Vendors

All

'~.~

TABUCHI ~~c

BOSCH

IDEAl0roWER

Ene'VY Storage Management System Vendors

r;# o

SUnVE RGE

Q"e~~gy

BOSCH

~'It!ll --

stem

All CODA

~1rIdIty v YOUOICOS

Q"en~gy

AES -~.

All BOSCH

--'"' e Younlcos

Energy Storage System Vendom

~ JlM ENERGY

SONNEN' a.-nElliE

TABUCHI .L..cT1'UC

All

e -"" o

.unV£RG£

----Ie> "'~ ...... ...,c ..

C!:. "M3 POwtRURIIE

SHARP 't:;' !Ioa::::.c.­

T:SL;:;

A •• _ BOSCH

~M"Ng

stem YOUOICOS

-:c ""'.;:. ... :Jpowin T :SL;:;

~ iii YOUniCOS

Energy Storage System Developers

SoIarOty SUNP WHO

TE5L;:;

CODA ---SHARP

SoIarOty ~~~

stem T:SL;:;

.~UGE

AES --era E~

--..MI1I lnvcnc rgy

Page 16: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

Not Just CA and NY

Many states are pursuing:

▪ Grid modernization efforts

▪ Distributed generation compensation improvement

▪ Energy efficiency and demand response

▪ Rate design reform

16

Page 17: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

17

Source: GTM Research

Wholesale Market Opportunities for DERs are Evolving

17

California ISO -.-'-lIquiltoty Tral'llfOl'lNldon: "

OU 00110 hI ,:. ,-.p'lTY AcI~ptlCln: ~

DEli Market",,": .

Gqflphll: ~: ..

o-~· . UnwpportNe F...ot1Ible

tl sTRATEGEN CON$ULTING

" ...... ..., , .. ,-",,, ~ OER DefWdon: ~

..... '" Aclrq.don: ()

OER M.rbtllule$: ()

GKtrapNc DbI*\lOn: f)

--...... u_

AtcI*..., Trarobmltloft: ()

DEli Otflnltlort: •

3"1'11'1\1 Au",.,tiDn.: ()

DEli MlNtetllulH: ~

Geq;rap/'Oc ~ ~

Page 18: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

▪ Economies of scale

▪ Control

▪ Security

▪ Stranded assets

▪ Consumer protection

▪ Rate design

▪ Fairness

A Cleaner, Smarter and more Distributed Future

for the Electricity Sector ?

18

Page 19: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

Thank you!Lon HuberSenior DirectorStrategen Consulting, LLC

Email: [email protected] Phone: 928-380-5540

More Information

19

Page 20: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

Western Conference 2017

DER 2.0:The Evolution of

Distributed Resource Technologies

and Regulators

Page 21: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

Imagination at work

Energy Connections Digital

Leonard Rainow

Chief Technology OfficerImagination at work

Page 22: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

Confidential. Not to be copied, distributed, or reproduced without prior

approval.

GE Digital

Jamshid

Predix Edge-to-Cloud

22

Cloud fo.m~ry

Ooto ,"I'UUucturo

Page 23: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

Confidential. Not to be copied, distributed, or reproduced without prior

approval.

GE Digital

Jamshid

23

Digital Solutions Platform – Predix for Digital Grid

Grid Digital Solutions

ApplicationsCloud

Services

End–to-End Security

Connectivity

Enterprise Apps

EAM

GIS

AMI Head-End

Predix Appliance

SCADA

Asset

Data

S

erv

ices

Analy

tic

s

Apps

Security

S

erv

ices

Edge

Mgr.

ADMS

Apps

Utility Data Infrastructure

on-Prem

3rd Party Apps

EMS

Beyond the meter IOT

C&I,

Residential

Dis

trib

ute

d

Inte

lligence

Control Server

Digital Substation

Dig

ita

l C

on

tro

l B

us (

oF

MB

)

Distributed

Control

Predix Connect

Data/Control Bus

Page 24: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

Grid Analytics

Asset Invest Planning Management

OutagePrediction

FLISR Performance

Storm Response

HistoricalOutage

Machine &Equipment Health

ReliabilityManagement

MaintenanceOptimization

Predix Platform

BusinessOptimization

OperationsOptimization

Asset Performance

Cyber Security Mobility T&D Assets IT Integration OT SystemsEdge Analytics

Renewable Mgmt. & ForecastingGrid Health

Network Connectivity

Grid APM

24

© Copyright 2017 General Electric Company. All rights reserved.

Page 25: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

GE Digital 25

Distribution & Grid Modernization Drivers

September 5, 2017DERM Overview

2

5

Retiring Workforce Grid ModernizationMore devices, more data

Situational IntelligenceData finds the user

Cyber-Security

EnvironmentPublic Safety, Storm

Restoration, Weather, GHG

System ScalabilityFrom energy cluster to

large Interconnected grids

System DynamicsOperating near to true real-

time limits

New TechnologiesDER, DA, AMI, Smart

Inverters Storage, Fuel Cells

CAPEX & OPEX Growing acceptance for

hosted & managed solutions

Regulatory ChangeNew business models

Distributed Energy ResourcesRenewable deployment & CO2-free energy new generation mix

Page 26: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed
Page 27: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

Western Conference 2017

DER 2.0:The Evolution of

Distributed Resource Technologies

and Regulators

Page 28: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

No smoking: Toward 100% renewable

• Routinely achieving 90% renewable during mid-day

• All but 1 generator shut down on clear days forup to 6 hours

Next up: periods of

100% renewable

during mid-day

Page 29: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

No ability to take solar without significant storage

• SolarCity / Tesla 13 MW / 52 MWh

• AES 20 MW / 100 MWh

• Additional projects in the works

Page 30: DER 2.0: The Evolution of Distributed Resource Technologies and Regulatorswestern.naruc.org/wp-content/uploads/sites/2/2016/01/der... · 2017-09-05 · DER 2.0: Evolution of Distributed

KIUC’s Storage Fleet

Smoothing

Frequency Control v1

4.5 MW / 3.0 MWh advanced lead acid (own)

Frequency Control v2

6 MW /4.6 MWh lithium ion (own)

Shifting

'--------;> Dispatchable Solar v1

13 MW / 52 MWh lithium ion (PPA)

Dispatchable Solar v2

20 MW /100 MWh lithium ion (PPA­planned)

100% RPS

We're working on it ...